James Company at the end of $2025,$ its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follo

Pretax financial income

$ $520,000$

Extra depreciation taken for tax purposes

$(1,200,000)$

Estimated expenses deductible for taxes when paid

$890,000$

Taxable income

$$210,000$

Use of the depreciable assets will result in taxable amounts of $$400,000$ in each of the next three years. The estimated litigation expenses of $$890,000$ deductible in $2024$ when settlement is expected.

Required:

Prepare a schedule of future taxable and deductible amounts.

Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for $2025,$ assuming a tax rate of $20\%$ for all years.